Is the Top In for Gold This Year?

Gold fell on Tuesday as safe-haven demand ebbed after Cyprus clinched a last-ditch rescue deal, and U.S. data showing continued gradual improvement in the economy also weighed.

While Cyprus's deal to shut down the country's second largest bank in return for 10 billion euros ($13 billion) in rescue funds removed the immediate risk of a financial meltdown, the European Central Bank worked to allay anxiety that this could have negative implications for other euro zone states.

Gold, which typically benefits from economic uncertainty, pushed to a three-week high of $1,616.36 an ounce last week on worries around the Cyprus bailout but dropped to a 1-1/2 week low of $1,589.49 on Monday after the 11th-hour rescue.

Spot gold was down 0.4 percent at $1,598.76 an ounce. Prices were however still on course for their first monthly gain - up around one percent so far this month - after posting declines in every month since October.